Nigeria has begun constructing a $2.8 billion gas pipeline project, the biggest in the country's history. The 614-km long pipeline will run from Ajaokuta to Kano under the auspices of Nigerian National Petroleum Corporation (NNPC).

It will feature a diameter of 40in and is expected to transport 3,500 million metric standard cubic feet per day (Mmscfd) of dehydrated wet gas from several gas gathering projects located in southern Nigeria.

Nigeria, currently ranked the 7th most endowed natural gas country in the world, sits on about 180 trillion cubic feet of natural gas deposits, which can be utilized as gas to power, gas to petrochemicals, liquefied natural gas (LNG), liquefied petroleum gas (LPG), and compressed natural gas (CNG), among others.

The project will result in the establishment of a connecting pipeline network between the eastern, western and northern regions of Nigeria.

At the same time it aims to create a steady and guaranteed gas supply network between the northern and southern parts of Nigeria by utilizing the country’s widely available gas resources.

"The project will be executed in three phases:

Phase one - will cover the construction of a 200km-long segment between Ajaokuta and Abuja Terminal Gas Station at a cost of $855m.

Phase two - will comprise a 193km-long section to be built between Abuja and Kaduna at a cost of approximately $835m.

Phase three will involve the construction of a 221km-long section between the Kaduna terminal gas station (TGS) and Kano TGS. This section will cost an estimated $1.2bn to complete.

The project will eventually reach North Africa in subsequent phases.